Restructuring of Needle Roller Bearing Business in Europe

JTEKT Corporation (Headquarters: Kariya-shi, Aichi Prefecture | President & CEO: Yoshihito Kondo, hereinafter referred to as "JTEKT") has reached a basic agreement * with a Germany-based financial investor AEQUITA for the transfer of our needle roller bearings (hereinafter referred to as "NRB") business in Europe, including all shares of our three consolidated subsidiaries engaged in the manufacture and sale of NRBs in Europe (hereinafter referred to as "Target Companies").

In our Second Medium-term Management Plan for the period from Fiscal Year 2024 through 2026, JTEKT is planning to strengthen its management and business structure by restructuring its global structure. As for our European business segment, we aim to become profitable by restructuring and consolidating our businesses and improving profitability.

We will pursue our internal reform through optimizing our strategies and business structure according to themarket environment in each region and continue proposing solutions to meet demand from customers.

*This basic agreement is a put option agreement, pursuant to which AEQUITA committed to purchase the business including the Target Companies. In case of exercise of such put option by us further to the completion of the consultation of the relevant works council of JTEKT Bearings France SAS, one of the Target Companies on this transaction, which is compulsory under French law, JTEKT and AEQUITA Group will execute a share and purchase agreement.